Tennessee car insurance

Tennessee drivers pay about $150 per month ($1,796 per year) for full coverage and $50 ($602 per year) for state-minimum, liability-only coverage. 

These are estimates only: Your rates will be based primarily on the company, your location, driving record, personal credit, age, discounts you qualify for, and the type and level of coverage you select. This article covers Tennessee’s car insurance laws, required coverage, available options, and how to find affordable, adequate protection.

Full coverage in Tennessee averages about $150 per month ($1,796 per year) on average for a full-coverage policy, and state minimum coverage costs about $50 per month ($602 a year).

Tennessee requires at least $25,000 in bodily injury liability per person, $50,000 per accident, and $25,000 in property damage liability insurance (25/50/25).¹

Is Tennessee’s state minimum coverage enough?

The Tennessee state minimum policy is liability-only. It only covers injuries or damage you cause in a crash. It includes no protection against damage to your own vehicle. 

These limits are usually adequate for minor fender-benders. But the state minimum coverage can still leave you dangerously underinsured against major wrecks involving serious injuries or damage to newer or expensive vehicles.

As of June 2026, the average new vehicle sold for $49,758.²  That’s nearly twice the property damage liability limit on a state minimum policy. A single collision that totals another driver’s late model car or truck can easily overwhelm your property damage liability insurance, and they can potentially sue you for the difference. 

If you choose liability only and skip collision and comprehensive coverage, any damage to your own car will come out of your own pocket.³ If you can’t afford to repair or replace your car quickly, it’s worth paying a little more for a full coverage policy.

How does MedPay work in Tennessee?

Medical payments coverage, or “MedPay,” pays medical and funeral costs for you and your passengers after a crash, regardless of who was at fault. Because there’s no fault determination needed, this benefit can pay very quickly.

MedPay is optional in Tennessee, and it’s not included in the state minimum policy. But you can choose to add it when you buy the policy. 

MedPay coverage usually comes in smaller limits than the medical coverage sold in no-fault states, often $1,000 to $10,000. It’s not usually enough by itself to pay for major injuries or hospitalizations. But it can help you pay deductibles, copays, and other costs your major medical plan doesn’t cover, while your primary medical insurance picks up the catastrophic costs.  

Do you need uninsured/underinsured motorist coverage in Tennessee?

UM/UIM coverage is optional in Tennessee. But it may be worth the extra premium: 21 percent of Tennessee drivers were uninsured in 2023, ranking Tennessee fifth in the country.⁴^. 

Uninsured and underinsured motorist coverage (UM/UIM) protects you when another at-fault driver has no insurance or carries too little to cover the damages they cause. It steps in to pay for your medical bills, time off work, long-term care, vehicle repair, or replacement.

Tennessee requires car insurance companies to offer UM/UIM coverage to you at limits equal to your bodily injury liability limits.⁵

What are the penalties for driving uninsured in Tennessee?

Driving while uninsured in Tennessee is a Class C misdemeanor, punishable by a fine of up to $300.⁶

More serious cases may be upgraded to Class A misdemeanors, including certain at-fault crashes that cause injury or death, and knowingly presenting invalid insurance as proof of coverage.⁶

Additionally, the Tennessee Department of Revenue checks coverage electronically and can flag any registered vehicle that appears uninsured.⁷

If the DOR system detects a suspected uninsured vehicle, the state will send you a notice giving you 30 days to verify insurance, show another form of financial responsibility, or establish an exemption. If you don’t resolve it, you’ll be charged a $25 coverage-failure fee, as of 2026, and the state will send a final notice. This gives you another 30 days. If you don’t resolve it, the state assesses another $100 penalty and may suspend your vehicle's registration. 

To reinstate it, you must pay the fees and show a valid policy. In some cases, the state may require an SR-22.⁷

Note: Tennessee coverage failure penalties are set to increase sharply on July 1, 2027. Legislation enacted in 2026 increases the initial penalty from $25 to $500 and the continued-failure fee from $100 to $1,000. If you get another notice within three years, you face an additional $1,500 fee.⁸

USAA has the lowest average full-coverage premium in Tennessee, at about $1,105 a year. But USAA membership is limited to military service members, veterans, and certain family members. For those not eligible for USAA, the next cheapest is Travelers at $1,268 per year, followed closely by GEICO at $1,447 per year, and Tennessee Farmers Insurance, at $1,578.

There's more than $1,800 a year between the priciest and cheapest carrier here for the same coverage. Luva compares Tennessee carriers on your details so you can find your best rate.

Car insurance premiums depend on several factors that differ for every driver. Here are some of the most important:

• Driving record: tickets, at-fault accidents, and a DUI conviction all increase car insurance premiums.  

• Age and experience: teenagers, young adults, and newly licensed drivers pay much higher rates than older drivers, on average. 

• Credit history: Tennessee allows insurers to consider personal credit as a factor in setting rates. Drivers with bad credit pay much higher rates, on average, than drivers with excellent credit. 

• Location: Rates can vary based on local traffic, theft, and repair costs.

• Vehicle: the year, make, model, safety features, and repair cost of your car all feed into the rate.

• Coverage choices: your liability limits, deductibles, and whether you carry full coverage or just liability.

How do violations affect Tennessee car insurance rates?

Luva Research ranks Tennessee among the worst states for driving.⁹ A single violation can increase premiums sharply in Tennessee.

How does location affect Tennessee car insurance rates?

Premiums tend to be higher in dense, high-traffic, and high property crime areas, such as Memphis and Nashville.

Comprehensive coverage, sometimes labeled “other than collision,” is optional in Tennessee, but it may be worth carrying. 

In rural areas, for example, deer collisions are extremely common, especially in the autumn. Animal collisions fall under comprehensive coverage. And some areas have very high property crime rates. Comprehensive coverage protects you against vandalism and damage to your vehicle from break-ins, vehicle theft, and catalytic converter theft.³

If your vehicle is financed, most lenders require borrowers to carry both comprehensive and collision insurance to protect their investment until the car is paid off. 

Here are a few tips for getting the most out of car insurance shopping: 

• Compare the same limits and deductibles across companies, so you are measuring price rather than coverage. Luva pulls quotes from multiple Tennessee carriers on matching terms, for a true apples-to-apples comparison.

• Don’t start by looking for the cheapest premiums. Look for the coverage you need first. Design your ideal policy with the coverage types, limits, and deductibles you need. Then get quotes based on that policy design. 

• Ask each company which discounts you qualify for, such as bundling home and auto, safe-driver discounts, paperless statements, and telematics programs.

• Set deductibles as high as you can comfortably afford. Higher deductibles can lower premiums substantially. But don’t set them so high that you can’t afford to quickly repair or replace your damaged or totaled vehicle. 

• Shop around for new coverage at every renewal or life change, such as getting married, relocating, buying a car, or paying off a car. Each of these may mean lower premiums.